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pdfInstructions for Form 944-X
Department of the Treasury
Internal Revenue Service
(Rev. February 2018)
Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund
Section references are to the Internal Revenue Code unless
otherwise noted.
Future Developments
For the latest information about developments related to Form
944-X and its instructions, such as legislation enacted after they
were published, go to IRS.gov/Form944X.
What's New
Employee consents to support a claim for refund. Rev.
Proc. 2017-28, 2017-14 I.R.B. 1061, available at IRS.gov/irb/
2017-14_IRB/ar09.html, provides guidance to employers on the
requirements for employee consents used by an employer to
support a claim for refund of overcollected social security tax
and Medicare tax. The revenue procedure clarifies the basic
requirements for both a request for employee consent and for
the employee consent, and permits a consent to be requested,
furnished, and retained in an electronic format as an alternative
to a paper format. The revenue procedure also contains
guidance concerning when an employer may claim a refund of
only the employer share of overcollected social security tax and
Medicare tax. The revenue procedure requires that any request
for consent include an Additional Medicare Tax notice indicating
that any claim on the employees’ behalf won’t include a claim for
overpaid Addtional Medicare Tax.
Qualified small business payroll tax credit for increasing
research activities. For tax years beginning after December
31, 2015, a qualified small business may elect to claim up to
$250,000 of its credit for increasing research activities as a
payroll tax credit against the employer’s share of social security
tax. The portion of the credit used against the employer’s share
of social security tax is allowed in the first calendar quarter
beginning after the date that the qualified small business filed its
income tax return. The first Form 944 that you can claim this
credit on is Form 944 filed for calendar year 2017. The election
and determination of the credit amount that will be used against
the employer’s share of social security tax are made on Form
6765, Credit for Increasing Research Activities. The payroll tax
credit must generally be elected only on an original income tax
return that is timely filed (including extensions). The amount from
Form 6765, line 44, must then be reported on Form 8974,
Qualified Small Business Payroll Tax Credit for Increasing
Research Activities. Form 8974 is used to determine the amount
of the credit that can be used in the current year. The amount
from Form 8974, line 12, is reported on Form 944, line 8. For
2017 and subsequent years, any correction to Form 944, line 8,
is reported on Form 944-X, line 13. If you make a correction on
Form 944-X, line 13, you must attach a corrected Form 8974.
For more information about the payroll tax credit, see Notice
2017-23, 2017-16 I.R.B. 1100, available at IRS.gov/irb/
2015-16_IRB/ar07.html. Also see the line 13 instructions in the
Instructions for Form 944.
Period of limitations to make certain corrections expired.
Generally, you may correct overreported taxes on a previously
filed Form 944 if you file Form 944-X within 3 years of the date
Form 944 was filed or 2 years from the date you paid the tax
reported on Form 944, whichever is later. For purposes of the
period of limitations, Form 944 is considered filed on April 15 of
the succeeding year if filed before that date.
Mar 01, 2018
The period of limitations to correct social security tax for 2011
and 2012 expired on April 17, 2015, and April 15, 2016,
respectively, for most employers. These instructions no longer
discuss the reduced rate of employee social security tax that
applied in 2011 and 2012. The 2011 and 2012 employee social
security tax rate was 4.2% and the employer social security tax
rate was 6.2% (10.4% total). If the period of limitations for 2011
and 2012 is still open, you can file the February 2018 revision of
Form 944-X but make sure you use the correct rate when
reporting corrections on lines 8 and 9.
Reminders
Retroactive increase in excludable transit benefits for
2014. The Tax Increase Prevention Act of 2014 increased the
monthly transit benefit exclusion from $130 per participating
employee to $250 per participating employee for the period of
January 1, 2014, through December 31, 2014. Employers were
provided instructions on how to correct the social security and
Medicare taxes on the excess transit benefits in Notice 2015-2,
2015-4 I.R.B. 334, available at IRS.gov/irb/2015-4_IRB/
ar06.html.
Retroactive increase in excludable transit benefits for
2015. The Consolidated Appropriations Act, 2016, increased
the monthly transit benefit exclusion from $130 per participating
employee to $250 per participating employee for the period of
January 1, 2015, through December 31, 2015. Employers were
provided instructions on how to correct the social security and
Medicare taxes on the excess transit benefits in Notice 2016-06,
2016-4 I.R.B. 287, available at IRS.gov/irb/2016-04_IRB/
ar07.html.
Claiming the COBRA premium assistance credit. The
COBRA premium assistance credit was available to an employer
for premiums paid on behalf of employees who were
involuntarily terminated from employment between September
1, 2008, and May 31, 2010. The COBRA premium assistance
credit isn’t available for individuals who were involuntarily
terminated after May 31, 2010. Therefore, only in rare
circumstances, such as instances where COBRA eligibility was
delayed as a result of employer provided health insurance
coverage following termination, will the credit be available. If
you’re eligible to claim the credit, use Form 944-X, lines 19a and
19b. Form 944-X should be filed after filing your Form 944. Filing
a Form 944-X before filing a Form 944 for the year may result in
errors or delays in processing your Form 944-X. For more
information, go to IRS.gov/COBRACredit.
If you’re entitled to claim the COBRA premium
TIP assistance credit, but aren’t otherwise required to file
Form 944, file a Form 944 with -0- entered on line 11
before filing your Form 944-X to claim the credit.
Correcting federal income tax withheld. Generally, you may
only correct administrative errors to federal income tax
withholding (that is, errors in which the amount reported on Form
944, line 2, isn’t the amount you actually withheld from an
employee’s wages) and errors for which section 3509 rates
apply. See section 13 of Pub. 15, Employer’s Tax Guide, for
more information about corrections during the calendar year and
about administrative errors. See section 2 of Pub. 15 for more
information about section 3509. If section 3509 rates apply, see
the instructions for lines 14–17, later.
Cat. No. 20334B
!
CAUTION
Qualified small business payroll tax credit for increasing
research activities; and
Credits for COBRA premium assistance payments.
Only transposition or math errors involving the
inaccurate reporting of the amount actually withheld are
“administrative errors.”
You can’t file a Form 944-X to correct federal income tax
withholding for prior years for nonadministrative errors. In other
words, you can’t correct federal income tax actually withheld
from an employee in a prior year if you discover that you didn’t
withhold the right amount. For example, you can’t correct federal
income tax withheld in a prior year because you used the wrong
income tax withholding table in Pub. 15 or you didn’t treat a
payment correctly as taxable or nontaxable. Similarly, if you paid
federal income tax in a prior year on behalf of your employee
rather than deducting it from the employee’s pay (which resulted
in additional wages subject to tax), and in a subsequent year you
determine that you incorrectly calculated the amount of tax, you
can’t correct the federal income tax withholding.
Use Form 843, Claim for Refund and Request for Abatement,
to request a refund or abatement of assessed interest or
penalties. Don’t request a refund or abatement of assessed
interest or penalties on Form 944 or Form 944-X.
We use the terms “correct” and “corrections” on Form
TIP 944-X and in these instructions to include interest-free
adjustments under sections 6205 and 6413 and claims
for refund and abatement under sections 6402, 6414, and 6404.
See Rev. Rul. 2009-39 for examples of how the interest-free
adjustment and claim for refund rules apply in 10 different
situations. You can find Rev. Rul. 2009-39, 2009-52 I.R.B. 951,
at IRS.gov/irb/2009-52_IRB/ar14.html.
The amount actually withheld is reflected on payroll
When you discover an error on a previously filed Form 944,
you must:
Correct that error using Form 944-X,
File a separate Form 944-X for each Form 944 that you’re
correcting, and
Generally, file Form 944-X separately. Don’t file Form 944-X
with Form 944. However, if you didn’t previously file Form 944
because you mistakenly treated your employees as
nonemployees, you may have to file Form 944-X with Form 944.
See the instructions for line 22, later.
TIP information or on Form W-2, Wage and Tax Statement,
which can be used by the employee to claim a credit for
withholding for individual income tax return purposes.
Correcting Additional Medicare Tax withholding. Wages
and tips subject to Additional Medicare Tax withholding are
reported on Form 944, line 4d. Certain errors discovered on a
previously filed Form 944 are corrected on Form 944-X, line 11.
However, you can’t file a Form 944-X to correct Additional
Medicare Tax actually withheld from an employee in a prior year,
including any amount you paid on behalf of your employee rather
than deducting it from the employee’s pay (which resulted in
additional wages subject to tax). See the instructions for line 11,
later, for more information on the types of errors that can be
corrected and how the correction is reported on Form 944-X. For
more information about Additional Medicare Tax withholding,
see the Instructions for Form 944 or go to IRS.gov/ADMT.
If you didn’t file a Form 944 for 1 or more years for which you
should have filed Form 944, don’t use Form 944-X. Instead, file
Form 944 for each of those years. See also When Should You
File Form 944-X, later. However, if you didn’t file Forms 944
because you improperly treated workers as independent
contractors or nonemployees and are now reclassifying them as
employees, see the instructions for line 22, later.
Correcting the COBRA premium assistance credit. For tax
periods ending before January 1, 2014, employers who made
COBRA premium assistance payments for assistance-eligible
individuals were allowed a credit on their Form 944. Any errors
discovered on a previously filed Form 944 for this credit are
corrected on Form 944-X, lines 19a and 19b. Effective for tax
periods beginning after December 31, 2013, Form 944-X is used
to both report the total COBRA premium assistance credit an
employer is entitled to claim and correct any previously reported
credit. For more information, see the instructions for lines 19a
and 19b, later.
Report the correction of underreported and overreported
amounts for the same year on a single Form 944-X, unless
you’re requesting a refund or abatement. If you’re requesting a
refund or abatement and you’re correcting both underreported
and overreported amounts, file one Form 944-X correcting the
underreported amounts only and a second Form 944-X
correcting the overreported amounts.
You’ll use the adjustment process if you underreported
employment taxes and are making a payment, or if you
overreported employment taxes and will be applying the credit to
Form 944 for the period during which you file Form 944-X.
However, see the Caution under Is There a Deadline for Filing
Form 944-X, later, if you’re correcting overreported amounts
during the last 90 days of a period of limitations. You’ll use the
claim process if you overreported employment taxes and are
requesting a refund or abatement of the overreported amount.
Follow the chart on the back of Form 944-X for help in choosing
whether to use the adjustment process or the claim process. Be
sure to give us a detailed explanation on line 23 for each
correction that you show on Form 944-X.
General Instructions:
Understanding Form 944-X
What Is the Purpose of Form 944-X?
For tax periods beginning after December 31, 2013,
Form 944 will no longer be used to claim the credit for
CAUTION COBRA premium assistance payments. Instead, use
Form 944-X. For more information, see the instructions for lines
19a and 19b, later.
!
Continue to report current year adjustments for fractions of
cents, third-party sick pay, tips, and group-term life insurance on
Form 944, line 6.
Use Form 944-X to correct errors on a previously filed Form
944. Use Form 944-X to correct:
Wages, tips, and other compensation;
Federal income tax withheld from wages, tips, and other
compensation;
Taxable social security wages;
Taxable social security tips;
Taxable Medicare wages and tips;
Taxable wages and tips subject to Additional Medicare Tax
withholding;
You have additional requirements to complete when filing
Form 944-X, such as certifying that you filed (or will file) all
applicable Forms W-2 and Forms W-2c, Corrected Wage and
Tax Statements. For corrections of overreported federal income
tax, social security, or Medicare tax, you must make any
certifications that apply to your situation.
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Instructions for Form 944-X (Rev. 2-2018)
Don’t use Form 944-X to correct Form CT-1, 941,
941-SS, 943, or 945. Instead, use the “X” form that
CAUTION corresponds to those forms (Form CT-1 X, 941-X,
943-X, or 945-X).
Form 945-A, line M, must match the corrected total tax (Form
944, line 9 (line 7 for years before 2017), combined with any
correction reported on Form 944-X, line 18) for the year, less any
previous abatements and interest-free tax assessments.
Where Can You Get Help?
Example—You owe tax. On February 13, 2018, you
discovered that you underreported $1,000 of social security and
Medicare wages on your 2017 Form 944. File Form 944-X and
pay the amount you owe by January 31, 2019, because you
discovered the error in 2018 and January 31, 2019, is the due
date for that year. If you file Form 944-X before January 31,
2019, pay the amount you owe by the time you file.
!
For help filing Form 944-X or for questions about federal
employment taxes and tax corrections, you can:
Go to IRS.gov/EmploymentTaxes;
See Pub. 15 or Pub. 80, Federal Tax Guide for Employers in
the U.S. Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands; or
Call the IRS Business and Specialty Tax Line toll free at
1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who
are deaf, hard of hearing, or have a speech disability) Monday–
Friday from 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii
follow Pacific time).
!
CAUTION
Form 944-X can’t be used to correct underreported
amounts of Additional Medicare Tax unless the amounts
were withheld from employee wages.
Overreported tax—adjustment process. If you overreported
tax and choose to apply the credit on Form 944 or Form 941, file
an adjusted return on Form 944-X soon after you discover the
error but more than 90 days before the period of limitations on
the credit or refund for Form 944 expires. See Is There a
Deadline for Filing Form 944-X below.
See also How Can You Get Forms, Instructions, and
Publications From the IRS, later.
When Should You File Form 944-X?
!
File Form 944-X when you discover an error on a previously filed
Form 944.
CAUTION
Form 944-X can’t be used to correct overreported
amounts of Additional Medicare Tax unless the amounts
were not withheld from employee wages.
However, if your only errors on Form 944 relate to federal tax
liabilities reported in Part 2 of Form 944 or on Form 945-A,
Annual Record of Federal Tax Liability, don’t file Form 944-X. To
correct federal tax liabilities reported in Part 2 of Form 944, file
Form 945-A, but only enter the monthly totals. The daily entries
aren’t required. For more information about correcting federal tax
liabilities reported on Form 945-A, see the Form 945-A
instructions.
Example—You want your credit applied to Form 944.
You filed your 2017 Form 944 on January 31, 2018, and
payments were timely made. On May 1, 2018, you discover that
you overreported tax on your 2017 Form 944. You file Form
944-X on June 4, 2018. The IRS treats your credit as a tax
deposit made on January 1, 2018. When you file your 2018
Form 944, include the amount from Form 944-X, line 20, on the
“Total deposits” line of your 2018 Form 944.
Due dates. The due date for filing Form 944-X depends on
when you discover an error and if you underreported or
overreported tax. If you underreported tax, see Underreported
tax next. For overreported amounts, you may choose to either
make an interest-free adjustment or file a claim for refund or
abatement. If you’re correcting overreported amounts, see
Overreported tax—adjustment process and Overreported
tax—claim process, later.
If any due date falls on a Saturday, Sunday, or legal holiday,
you may file Form 944-X on the next business day. The term
“legal holiday” means any legal holiday in the District of
Columbia. See Pub. 15 for the list of legal holidays. If we receive
Form 944-X after the due date, we will treat Form 944-X as filed
on time if the envelope containing Form 944-X is properly
addressed, contains sufficient postage, and is postmarked by
the U.S. Postal Service on or before the due date, or sent by an
IRS-designated private delivery service (PDS) on or before the
due date. If you don’t follow these guidelines, we will consider
Form 944-X filed when it is actually received. Go to IRS.gov/PDS
for the current list of PDSs. For the IRS mailing address to use if
you’re using a PDS, go to IRS.gov/PDSstreetAddresses.
If you reduced your deposits during the year by the
amount of the COBRA premium assistance credit that
CAUTION will be reflected on your Form 944-X, don’t use the
adjustment process to claim the COBRA premium assistance
credit. Use the claim process. See the instructions for lines 19a
and 19b, later.
!
Overreported tax—claim process. If you overreported tax on
Form 944, you may choose to file a claim for refund or
abatement on Form 944-X any time before the period of
limitations on credit or refund expires. If you also need to correct
any underreported amounts, you must file another Form 944-X
reporting only corrections to the underreported amounts. See Is
There a Deadline for Filing Form 944-X next.
!
CAUTION
Is There a Deadline for Filing Form
944-X?
Underreported tax. If you’re correcting underreported tax, you
must file Form 944-X by the due date of the return for the return
period in which you discovered the error (January 31 of the
following year) and pay the amount you owe by the time you
file. Doing so will generally ensure that your correction is interest
free and not subject to failure-to-pay (FTP) or failure-to-deposit
(FTD) penalties. See What About Penalties and Interest, later.
For details on how to make a payment, see the instructions for
line 20, later.
If Form 944-X is filed late (after the due date of the return for
the return period in which you discovered the error), you must
attach an amended Form 945-A to Form 944-X. Otherwise, the
IRS may assess an “averaged” FTD penalty. The tax reported on
Instructions for Form 944-X (Rev. 2-2018)
You may not file a refund claim to correct federal income
tax or Additional Medicare Tax actually withheld from
employees.
Generally, you may correct overreported taxes on a previously
filed Form 944 if you file Form 944-X within 3 years of the date
Form 944 was filed or 2 years from the date you paid the tax
reported on Form 944, whichever is later. You may correct
underreported taxes on a previously filed Form 944 if you file
Form 944-X within 3 years of the date the Form 944 was filed.
We call each of these time frames a “period of limitations.” For
purposes of the period of limitations, Form 944 is considered
filed on April 15 of the succeeding year if filed before that date.
Example. You filed your 2014 Form 944 on January 26,
2015, and payments were timely made. The IRS treats the return
as if it were filed on April 15, 2015. On January 22, 2018, you
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Return You’re Correcting
discovered that you overreported social security and Medicare
wages on that form by $350. To correct the error, you must file
Form 944-X by April 17, 2018 and use the claim process.
Enter the calendar year of the Form 944 you’re correcting. Enter
the calendar year on pages 2 and 3 in the box marked
“Correcting Calendar Year.” Be sure to write your name, EIN,
“Form 944-X,” and the calendar year you’re correcting on the top
of any attachments.
If you file Form 944-X to correct overreported amounts in
the last 90 days of a period of limitations, you must use
CAUTION the claim process. You can’t use the adjustment
process. If you’re also correcting underreported amounts, you
must file another Form 944-X to correct the underreported
amounts using the adjustment process and pay any tax due.
!
Enter the Date You Discovered Errors
You must enter the date you discovered errors. You discover an
error when you have enough information to be able to correct the
error. If you’re reporting several errors you discovered at
different times, enter the earliest date you discovered an error
here. Report any subsequent dates and related errors on line 23.
Where Should You File Form 944-X?
Send your completed Form 944-X to the address shown next.
For the IRS mailing address to use if you’re using a PDS, go to
IRS.gov/PDSstreetAddresses.
IF you’re in . . .
Connecticut, Delaware, District of
Columbia, Florida, Georgia, Illinois,
Indiana, Kentucky, Maine, Maryland,
Massachusetts, Michigan, New
Hampshire, New Jersey, New York,
North Carolina, Ohio, Pennsylvania,
Rhode Island, South Carolina,
Tennessee, Vermont, Virginia, West
Virginia, Wisconsin
Alabama, Alaska, Arizona, Arkansas,
California, Colorado, Hawaii, Idaho,
Iowa, Kansas, Louisiana, Minnesota,
Mississippi, Missouri, Montana,
Nebraska, Nevada, New Mexico,
North Dakota, Oklahoma, Oregon,
South Dakota, Texas, Utah,
Washington, Wyoming
No legal residence or principal place
of business in any state
Special filing address for exempt
organizations; federal, state, and
local governmental entities; and
Indian tribal governmental entities;
regardless of location
Must You Make an Entry on Each Line?
You must provide all of the information requested at the top of
Form 944-X, page 1. You must check one box (but not both) in
Part 1. In Part 2, you must check the box on line 3 and any
applicable boxes on lines 4 and 5. In Part 3, if any line doesn’t
apply, leave it blank. Complete Parts 4 and 5 as instructed.
THEN use this address . . .
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0044
How Should You Report Negative Amounts?
Form 944-X uses negative numbers to show reductions in tax
(credits) and positive numbers to show additional tax (amounts
you owe).
When reporting a negative amount in columns 3 and 4, use a
minus sign instead of parentheses. For example, enter “-10.59”
instead of “(10.59).” However, if you’re completing the return on
your computer and your software only allows you to use
parentheses to report negative amounts, you may use them.
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0044
How Should You Make Entries on Form 944-X?
You can help the IRS process Form 944-X timely and accurately
if you follow these guidelines.
Type or print your entries.
Use Courier font (if possible) for all typed or
computer-generated entries.
Omit dollar signs. You may use commas and decimal points,
if desired. Enter dollar amounts to the left of any preprinted
decimal point and cents to the right of it.
Always show an amount for cents, even if it is zero. Don’t
round entries to whole dollars.
Complete all three pages and sign Form 944-X on page 3.
Staple multiple sheets in the upper-left corner.
Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0044
How Should You Complete Form
944-X?
What About Penalties and Interest?
Generally, your correction of an underreported amount won’t be
subject to an FTP penalty, FTD penalty, or interest if you:
Enter the date you discovered the error,
Explain in detail the grounds and facts relied on to support the
correction,
File on time (by the due date of Form 944 for the year in which
you discover the error), and
Pay the amount shown on line 20 by the time you file Form
944-X.
Use a Separate Form 944-X for Each Year You’re
Correcting
Use a separate Form 944-X for each Form 944 you’re correcting.
For example, if you found errors on your Forms 944 for 2016 and
2017, file one Form 944-X to correct the 2016 Form 944. File a
second Form 944-X to correct the 2017 Form 944.
Employer Identification Number (EIN), Name,
and Address
No correction will be eligible for interest-free treatment if any
of the following apply.
The amounts underreported relate to an issue that was raised
in an examination of a prior period.
You knowingly underreported your employment tax liability.
You received a notice and demand for payment.
You received a notice of determination under section 7436.
Enter your EIN, name, and address in the spaces provided. Also
enter your name and EIN on the tops of pages 2 and 3, and on
any attachments. If your address has changed since you filed
your Form 944, enter the corrected information and the IRS will
update your address of record. Be sure to write your name, EIN,
“Form 944-X,” and the calendar year you’re correcting on the top
of any attachments.
If you receive a notice about a penalty after you file this
return, reply to the notice with an explanation and we will
determine if you meet reasonable-cause criteria. Don’t attach an
explanation when you file your return.
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Instructions for Form 944-X (Rev. 2-2018)
Overview of the Process
you check this box, any negative amount shown on line 20 will
be applied as a credit (tax deposit) to your Form 944 or Form
941 for the period in which you’re filing this form. See
Example—You want your overreported tax applied as a credit on
Form 944 above.
To correct a previously filed Form 944, use Form 944-X to file
either an adjusted employment tax return or a claim for refund or
abatement. The adjustment process and the claim process are
outlined below.
If you underreported the tax. If you underreported the tax
on a previously filed Form 944, check the box on line 1 and pay
any additional amount you owe by the time you file Form
944-X. For details on how to make a payment, see the
instructions for line 20, later.
!
CAUTION
If you owe tax. Pay the amount shown on line 20 by the time
you file Form 944-X. Generally, you won’t be charged interest if
you file on time, pay on time, enter the date you discovered the
error, and explain the correction on line 23.
Example—You underreported employment taxes. On
June 20, 2017, you discovered an error that results in additional
tax on your 2016 Form 944. File Form 944-X by January 31,
2018, and pay the amount you owe by the time you file. See
When Should You File Form 944-X, earlier. Don’t attach Form
944-X to your 2017 Form 944.
If you overreported the tax. If you overreported the tax on a
previously filed Form 944, choose one of the following options.
Use the adjustment process. Check the box on line 1 to apply
any credit (negative amount) from line 20 to Form 944 for the
year during which you file Form 944-X.
Use the claim process. Check the box on line 2 to file a claim
on Form 944-X requesting a refund or abatement of the amount
shown on line 20.
If you have a credit. You overreported employment taxes (you
have a negative amount on line 20) and want the IRS to apply
the credit on Form 944 (or Form 941) for the period during which
you filed Form 944-X. The IRS will apply your credit to the first
day of the Form 944 year (or Form 941 quarter) during which you
filed Form 944-X. However, the credit you show on Form 944-X,
line 20, may not be fully available on your Form 944 (or Form
941) if the IRS corrects it during processing or you owe other
taxes, penalties, or interest. The IRS will notify you if your
claimed credit changes or if the amount available as a credit on
Form 944 or Form 941 was reduced because of unpaid taxes,
penalties, or interest.
To ensure the IRS has enough time to process a credit
Don’t check the box on line 1 if you’re either: (a)
correcting overreported amounts and the period of
CAUTION limitations on credit or refund for Form 944 will expire
within 90 days of the date you file Form 944-X, or (b) claiming a
credit for COBRA premium assistance payments and you
reduced your deposits in anticipation of the credit. Instead, in
either case, check the box on line 2 to file a Form 944-X under
the claim process. See Is There a Deadline for Filing Form
944-X, earlier. Also see the instructions for lines 19a and 19b,
later.
TIP for an overreporting adjustment in the year in which
!
you file Form 944-X, you’re encouraged to file Form
944-X correcting the overreported amount in the first 11 months
of a year. However, there must be 90 days remaining on the
period of limitations when you file Form 944-X. See the Caution
under Is There a Deadline for Filing Form 944-X, earlier. For
example, if you discover an overreported amount in December,
you may want to file Form 944-X during the first 11 months of the
next year. This should ensure the IRS will have enough time to
process the Form 944-X so the credit will be posted before you
file Form 944, thus avoiding an erroneous balance due notice
from the IRS. See the example below.
2. Claim
Check the box on line 2 to use the claim process if you’re
correcting overreported amounts only and you’re claiming a
refund or abatement for the negative amount (credit) shown on
line 20. Don’t check this box if you’re correcting any
underreported amounts on this form.
If you currently file Form 941 instead of Form 944 and will claim
a credit on Form 941, file Form 944-X in the first 2 months of a
quarter in any quarter before the expiration of the period of
limitations on Form 944. In the year of the expiration of the
period of limitations on Form 944, file Form 944-X at least 90
days before the expiration date.
You must check the box on line 2 if you have a credit and the
period of limitations on credit or refund for Form 944 will expire
within 90 days of the date you file Form 944-X. See Is There a
Deadline for Filing Form 944-X, earlier.
Example—You want your overreported tax applied as a
credit on Form 944. On December 18, 2018, you discover you
overreported your tax on your 2017 Form 944 and want to
choose the adjustment process. To allow the IRS enough time to
process the credit, you file Form 944-X on January 4, 2019, and
take the credit on your 2019 Form 944.
The IRS usually processes claims shortly after they are filed.
The IRS will notify you if your claim is denied, accepted as filed,
or selected to be examined. See Pub. 556, Examination of
Returns, Appeal Rights, and Claims for Refund, for more
information.
Specific Instructions:
Unless the IRS corrects Form 944-X during processing or you
owe other taxes, penalties, or interest, the IRS will refund the
amount shown on line 20, plus any interest that applies.
Part 1: Select ONLY One Process
Because Form 944-X may be used to file either an adjusted
employment tax return or a claim for refund or abatement, you
must check one box on either line 1 or line 2. Don’t check both
boxes.
!
CAUTION
You may not file a refund claim to correct federal income
tax or Additional Medicare Tax actually withheld from
employees.
Part 2: Complete the Certifications
1. Adjusted Employment Tax Return
You must complete all certifications that apply by checking the
appropriate boxes. If all of your corrections relate to
underreported amounts, complete line 3 only; skip lines 4 and 5
and go to Part 3. If your corrections relate to overreported
amounts, you have a duty to ensure that your employees' rights
to recover overpaid employee social security and Medicare
Check the box on line 1 if you’re correcting underreported
amounts or overreported amounts and you would like to use the
adjustment process to correct the errors.
If you’re correcting both underreported amounts and
overreported amounts on this form, you must check this box. If
Instructions for Form 944-X (Rev. 2-2018)
Form 944-X can’t be used to correct overreported
amounts of Additional Medicare Tax unless the amounts
were not withheld from employee wages.
-5-
corrections for the employees who provided statements or
consents and for those who didn’t.
taxes that you withheld are protected. The certifications on lines
4 and 5 address the requirement to:
Repay or reimburse your employees for the overcollection of
employee social security and Medicare taxes, or
Obtain consents from your employees to file a claim on their
behalf. See Rev. Proc. 2017-28 for guidance on the
requirements for both a request for employee consent and for
the employee consent.
You may not file a refund claim to correct federal income
tax or Additional Medicare Tax actually withheld from
CAUTION employees. If you request their consent to file a claim for
social security tax or Medicare tax, you must tell your employees
that you can’t claim a refund of any Additional Medicare Tax on
their behalf. See Rev. Proc. 2017-28 for sample language to use
in your request.
!
3. Filing Forms W-2 or Forms W-2c
Check the box on line 3 to certify that you filed or will file Forms
W-2 or Forms W-2c, as required, showing your employees'
correct wage and tax amounts. See the General Instructions for
Forms W-2 and W-3 for detailed information about filing
requirements. References to Form W-2 on Form 944-X and in
these instructions also apply to Forms W-2AS, W-2CM, W-2GU,
and W-2VI unless otherwise noted.
5a. Check the box on line 5a if your overreported tax includes
each affected employee share of prior year social security and
Medicare tax. You’re certifying that you repaid or reimbursed to
the employees their share of prior year social security and
Medicare tax and you received written statements from those
employees stating that they didn’t and won’t receive a refund or
credit for the prior year taxes. Don’t send these statements to the
IRS. Keep them for your records. Generally, all employment tax
records must be kept for at least 4 years. Copies must be
submitted to the IRS if requested.
You must check the box on line 3 to certify that you filed
Forms W-2 or Forms W-2c even if your corrections on Form
944-X don’t change amounts shown on those forms. For
example, if your only correction to Form 944 involves misstated
tax adjustments (see the instructions for line 12, later), check the
box on line 3 to certify that you already filed all required Forms
W-2 and W-2c with the Social Security Administration (SSA).
5b. Check the box on line 5b if your overreported tax includes
each affected employee share of prior year social security and
Medicare tax and you haven’t yet repaid or reimbursed the
employee share of taxes. You’re certifying that you received
consent from each affected employee to file a claim on the
employee share of those taxes and you received written
statements from those employees stating that they didn’t and
won’t receive a refund or credit for the prior year taxes.
An employee consent must:
Contain the name, address, and social security number (or
truncated taxpayer identification number, when appropriate) of
the employee;
Contain the name, address, and EIN of the employer;
Contain the tax period(s), type of tax, and the amount of tax
for which the consent is provided;
Affirmatively state that the employee authorizes the employer
to claim a refund for the overpayment of the employee share of
tax;
Include the employee's written statement certifying that the
employee hasn't made any previous claims (or the claims were
rejected) and won't make any future claims for refund or credit of
the amount of the overcollection;
Identify the basis of the claim; and
Be dated and contain the employee's signature under
penalties of perjury. The penalties of perjury statement should
be located immediately above the required signature.
Don’t send these statements and consents to the IRS. Keep
them for your records. Generally, all employment tax records
must be kept for at least 4 years. Copies must be submitted to
the IRS if requested.
4. Certifying Overreporting Adjustments
If you overreported federal income tax, social security tax,
Medicare tax, or Additional Medicare Tax and checked the box
on line 1, check the appropriate box on line 4. You may need to
check more than one box. If you obtained written statements
from some employees but you couldn’t locate employees or
secure the statements of the remaining employees, check all
applicable boxes. Provide a summary on line 23 of the amount of
the corrections for the employees who provided written
statements and for those who didn’t.
!
CAUTION
You may not use Form 944-X to correct overreported
amounts of Additional Medicare Tax unless the amounts
weren’t withheld from employee wages.
4a. Check the box on line 4a if your overreported amount
includes each affected employee share of overcollected taxes.
You’re certifying that you repaid or reimbursed the employee
share of prior year taxes and you received written statements
from the employees stating that they didn’t and won’t receive a
refund or credit for the prior year taxes. Don’t send these
statements to the IRS. Keep them for your records. Generally, all
employment tax records must be kept for at least 4 years.
Copies must be submitted to the IRS if requested.
4b. Check the box on line 4b to certify that your overreported
amount is only for the employer share of taxes on those
employees who you were unable to find or those who didn’t give
you a statement described on line 4a.
In certain situations, you may not have repaid or reimbursed
your employees or obtained their consents before filing a claim,
such as in cases where the period of limitations on credit or
refund is about to expire. In those situations, file Form 944-X but
don’t check a box on line 5. Tell us on line 23 that you haven’t
repaid or reimbursed employees or obtained consents at the
time you file the claim. However, you must repay or reimburse
your employees and certify that you have done so before the
IRS can allow the claim.
4c. Check the box on line 4c to certify that your overreported
amount is only for federal income tax, social security tax,
Medicare tax, or Additional Medicare Tax that you didn’t
withhold from your employees.
5. Certifying Claims
If you’re filing a claim for refund or abatement of overreported
federal income tax, social security tax, Medicare tax, or
Additional Medicare Tax and checked the box on line 2, check
the appropriate box on line 5. You may need to check more than
one box. If you obtained written statements or consents from
some employees but you couldn’t locate employees or secure
the statements of the remaining employees, check all applicable
boxes. Provide a summary on line 23 of the amount of the
5c. Check the box on line 5c to certify that your overreported tax
is only for the employer share of social security and Medicare
tax. This applies when affected employees didn’t give you
consent to file a claim for refund for the employee share of social
security and Medicare tax, they couldn’t be found, or they didn’t
give you a statement described on line 5b.
5d. Check the box on line 5d to certify that your overreported
amount is only for federal income tax, social security tax,
-6-
Instructions for Form 944-X (Rev. 2-2018)
$50 monthly auto allowance from October–December 2017 and
didn’t treat the payments as taxable wages. However, in
February 2018, you realized that the payments were wages
because they were not reimbursements of deductible business
expenses that were substantiated and paid under an
accountable plan. Therefore, you must correct the error and treat
the auto allowance as wages subject to income, social security,
and Medicare taxes. Use Form 944-X to report the additional
$150 of wages on line 6 and any underreported amounts on
lines 8 and 10.
Medicare tax, or Additional Medicare Tax that you didn’t
withhold from your employees.
Part 3: Enter the Corrections for the
Calendar Year You’re Correcting
What Amounts Should You Report in Part 3?
On lines 6–11, columns 1 and 2, show amounts for all of your
employees, not just for those employees whose amounts you’re
correcting.
The amount on line 6, column 1, should be used on your
TIP Forms W-2 or Forms W-2c. This amount should also be
If a correction you report in column 4 includes both
underreported and overreported amounts (see the instructions
for line 21, later), give us details for each error on line 23.
used for any business expense deduction on your
income tax return (or amended return) for wages paid.
Because special circumstances apply for lines 12–17, 19a,
and 19b, read the instructions for each line carefully before
entering amounts in the columns.
7. Federal Income Tax Withheld From Wages,
Tips, and Other Compensation
If you’re correcting the federal income tax withheld from wages,
tips, and other compensation you reported on Form 944, line 2,
enter the total corrected amount in column 1. In column 2, enter
the amount you originally reported or as previously corrected. In
column 3, enter the difference between columns 1 and 2.
If you previously adjusted or amended Form 944 using
Form 944-X or because of an IRS examination change,
CAUTION show amounts in column 2 that include those previously
reported corrections.
!
6. Wages, Tips, and Other Compensation
line 7 (column 1)
-line 7 (column 2)
If you’re correcting the wages, tips, and other compensation you
reported on Form 944, line 1, enter the total corrected amount
for all employees in column 1. In column 2, enter the amount you
originally reported. In column 3, enter the difference between
columns 1 and 2.
line 7 (column 3)
If you or the IRS previously corrected the amount reported on
Form 944, line 1, enter in column 2 the amount after any
previous corrections.
Copy the amount in column 3 to column 4. Include any minus
sign shown in column 3.
Generally, you may only correct administrative errors to
federal income tax withholding (that is, errors in which
CAUTION the amount reported on Form 944 isn't the amount you
actually withheld from an employee's wages) and errors for
which section 3509 rates apply. Only transposition or math
errors involving the inaccurate reporting of the amount withheld
are "administrative errors." The administrative error adjustment
corrects the amount reported on Form 944 to agree with the
amount actually withheld from employees. See section 2 of Pub.
15 for more information about section 3509. If section 3509 rates
apply, see the instructions for lines 14–17, later.
!
line 6 (column 1)
-line 6 (column 2)
line 6 (column 3)
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.
Example—Wages, tips, and other compensation
increased. You reported $900 as total wages, tips, and other
compensation on line 1 of your 2017 Form 944. In July of 2018,
you discover that you had overlooked $100 in tips for one of your
part-time employees. To correct the error, figure the difference
on Form 944-X as shown.
Column 1 (corrected amount)
Column 2 (from Form 944, line 1)
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.
You can't file a Form 944-X to correct federal income tax
withholding for prior years for nonadministrative errors. In other
words, you can't correct federal income tax actually withheld
from an employee in a prior year if you discover that you didn't
withhold the right amount. For example, you can't correct federal
income tax withheld in a prior year because you used the wrong
income tax withholding table in Pub. 15 or you didn't treat a
payment correctly as taxable or nontaxable. Similarly, if you paid
federal income tax in a prior year on behalf of your employee
rather than deducting it from the employee's pay (which resulted
in additional wages subject to tax), and in a subsequent year you
determine that you incorrectly calculated the amount of tax, you
can't correct the federal income tax withholding.
1000.00
-900.00
Column 3 (difference)
100.00
Example—Wages, tips, and other compensation
decreased. You reported $900 as wages, tips, and other
compensation on line 1 of your 2017 Form 944. In December of
2018, you discover that you included $200 in wages for one of
your employees twice. To correct the error, figure the difference
on Form 944-X as shown.
Column 1 (corrected amount)
Column 2 (from Form 944, line 1)
700.00
-900.00
Column 3 (difference)
-200.00
Example—Prior year nonadministrative error (Failure to
withhold federal income tax when required). You were
required to withhold $400 of federal income tax from an
employee's bonus that was paid in December of 2017 but you
withheld nothing. You discovered the error on March 19, 2018.
You can’t file Form 944-X to correct your 2017 Form 944
because the error involves a previous year and the amount
previously reported for the employee represents the actual
amount withheld from the employee during 2017.
Example—Auto allowance; wages, tips, and other
compensation increased. You paid one of your employees a
Instructions for Form 944-X (Rev. 2-2018)
-7-
twice were also taxable social security wages. To correct the
error, figure the difference on Form 944-X as shown.
Example—Prior year administrative error (incorrectly
reported amount of federal income tax actually withheld).
You had three employees. In 2017, you withheld $100 of federal
income tax from Nathan Smith, $200 from Leah Green, and
$600 from Becky Lee. The total amount of federal income tax
you withheld was $900. You mistakenly reported $600 on line 2
of your 2017 Form 944. You discovered the error on March 19,
2018. This is an example of an administrative error that may be
corrected in a later calendar year because the amount actually
withheld from employees' wages differs from the amount
reported on Form 944. Use Form 944-X to correct the error.
Enter $900 in column 1 and $600 in column 2. Subtract the
amount in column 2 from the amount in column 1.
Column 1 (corrected amount)
Column 2 (from Form 944, line 2)
-200.00
-200.00
x 0.124
Column 4 (tax correction)
300.00
-24.80
Be sure to explain the reasons for this correction on line 23.
9. Taxable Social Security Tips
If you’re correcting the taxable social security tips you reported
on Form 944, line 4b, column 1, enter the total corrected amount
in column 1. In column 2, enter the amount you originally
reported or as previously corrected. In column 3, enter the
difference between columns 1 and 2.
Example—Nonadministrative error reporting income tax
due to repayment of wages paid in prior year. You paid
Jack Brown $4,000 of wages for 2 months of work in September
2017. You withheld $400 of federal income tax at the time you
paid Jack. These amounts were reported on your 2017 Form
944. Jack left employment in October 2017 (after only 1 month
of service). In February 2018, Jack repaid $2,000 to you. You
can't file Form 944-X to reduce the federal income tax withheld
because you actually withheld the federal income tax from
wages. You also can't file Form 944-X to reduce wages because
the wages were income to Jack for the prior year. These
amounts were correctly reported on Form 944.
line 9 (column 1)
-line 9 (column 2)
line 9 (column 3)
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.
Multiply the amount in column 3 by 0.124 (12.4% tax rate)
and report the result in column 4.
8. Taxable Social Security Wages
If you’re correcting the taxable social security wages you
reported on Form 944, line 4a, column 1, enter the total
corrected amount in column 1. In column 2, enter the amount
you originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2.
line 9 (column 3)
x 0.124
line 9 (column 4)
line 8 (column 1)
-line 8 (column 2)
If the amount in column 3 used a minus sign,
also use a minus sign in column 4.
Note. If you’re correcting only the employer share of tax on a
decrease to social security tips, use 0.062 (6.2%) when
multiplying the amount shown in column 3. If you’re correcting
both shares of tax for some employees and only the employer
share for other employees, report the properly calculated
amount in column 4. Be sure to show your calculations on
line 23.
Example—Social security tips increased. Following the
Example—Wages, tips, and other compensation increased in
the instructions for line 6, earlier, the tips that you overlooked
were also taxable social security tips. To correct the error, figure
the difference on Form 944-X as shown.
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.
Multiply the amount in column 3 by 0.124 (12.4% tax rate)
and enter the result in column 4.
line 8 (column 3)
x 0.124
line 8 (column 4)
Column 3 (difference)
Column 3 (difference)
Tax rate (12.4%)
Report the $300.00 as a tax correction in column 4.
Be sure to explain the reasons for this correction on line 23.
line 8 (column 3)
700.00
-900.00
Use the difference in column 3 to determine your tax
correction.
900.00
-600.00
Column 3 (difference)
Column 1 (corrected amount)
Column 2 (from Form 944, line 4a, column 1)
If the amount in column 3 used a minus sign,
also use a minus sign in column 4.
Column 1 (corrected amount)
Column 2 (from Form 944, line 4b, column 1)
Column 3 (difference)
Note. If you’re correcting only the employer share of tax on a
decrease to social security wages, use 0.062 (6.2%) when
multiplying the amount shown in column 3. If you’re correcting
both shares of tax for some employees and only the employer
share for other employees, enter the properly calculated amount
in column 4. Be sure to show your calculations on line 23.
1000.00
- 900.00
100.00
Use the difference in column 3 to determine your tax
correction.
Example—Social security wages decreased. Following
Example—Wages, tips, and other compensation decreased in
the instructions for line 6, earlier, the wages that you counted
-8-
Instructions for Form 944-X (Rev. 2-2018)
Column 3 (difference)
Tax rate (12.4%)
reporting the amount on Form 944, line 4d, column 2. Similarly, if
the amount reported on Form 944, line 4d, column 2 doesn’t
agree with the amount you paid on behalf of your employee
rather than deducting it from the employee’s pay (which resulted
in additional wages subject to tax), you may correct Form 944,
line 4d, column 2, because the amount you paid on behalf of the
employee is treated as the amount actually withheld.
100.00
x 0.124
Column 4 (tax correction)
12.40
Be sure to explain the reasons for this correction on line 23.
You may also correct errors to Additional Medicare Tax
withholding for prior years if section 3509 rates apply. If section
3509 rates apply, see the instructions for lines 14–17, later.
10. Taxable Medicare Wages and Tips
If you’re correcting the taxable Medicare wages and tips you
reported on Form 944, line 4c, column 1, enter the total
corrected amount in column 1. In column 2, enter the amount
you originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2.
If a prior year error was a nonadministrative error, you may
correct only the wages and tips subject to Additional Medicare
Tax withholding that were originally reported on Form 944,
line 4d, column 1, or previously corrected on Form 944-X. You
can’t correct the tax reported on Form 944, line 4d, column 2.
line 10 (column 1)
-line 10 (column 2)
line 10 (column 3)
Prior year administrative errors. If you’re correcting the
taxable wages and tips subject to Additional Medicare Tax
withholding that you reported on Form 944, line 4d, column 1,
enter the total corrected amount in column 1. In column 2, enter
the amount you originally reported or as previously corrected. In
column 3, enter the difference between columns 1 and 2.
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.
Multiply the amount in column 3 by 0.029 (2.9% tax rate) and
enter the result in column 4.
line 11 (column 1)
-line 11 (column 2)
line 11 (column 3)
line 10 (column 3)
x 0.029
line 10 (column 4)
If the amount in column 3 used a minus sign,
also use a minus sign in column 4.
Multiply the amount in column 3 by 0.009 (0.9% tax rate) and
enter that result in column 4.
Note. If you’re correcting only the employer share of tax on a
decrease to Medicare wages and tips, use 0.0145 (1.45%) when
multiplying the amount in column 3. If you’re correcting both
shares of tax for some employees and only the employer share
for other employees, enter the properly calculated amount in
column 4. Be sure to explain your calculations on line 23.
line 11 (column 3)
x 0.009
line 11 (column 4)
Example—Medicare wages and tips decreased.
Following Example—Wages, tips, and other compensation
decreased in the instructions for line 6, earlier, the wages that
you counted twice were also taxable Medicare wages and tips.
To correct the error, figure the difference on Form 944-X as
shown.
Column 1 (corrected amount)
Column 2 (from Form 944, line 4c, column 1)
700.00
-900.00
Column 3 (difference)
-200.00
Column 4 (tax correction)
-200.00
x 0.029
-5.80
Be sure to explain the reasons for this correction on line 23.
Column 1 (corrected amount)
Column 2 (from Form 944, line 4d, column 1)
30,000.00
-3,000.00
Column 3 (difference)
27,000.00
Use the difference in column 3 to determine your tax
correction.
11. Taxable Wages and Tips Subject to
Additional Medicare Tax Withholding
Generally, you may correct errors to Additional Medicare Tax
withholding only if you made an administrative error. An
administrative error is when the amount reported on Form 944,
line 4d, column 2, isn’t the amount you actually withheld from
employees because you transposed or made a basic math error
Instructions for Form 944-X (Rev. 2-2018)
If the amount in column 3 used a minus sign, also
use a minus sign in column 4.
Example—Prior year administrative error (incorrectly
reported amount of Additional Medicare Tax actually
withheld). Nathan Smith's wages exceeded the $200,000
withholding threshold for Additional Medicare Tax in November
2017. The total wages paid to Nathan for 2017 were $230,000.
You withheld $270 ($30,000 x 0.009) from Nathan’s wages.
However, on your 2017 Form 944 you mistakenly reported
$3,000 on line 4d, column 1, and Additional Medicare Tax
withheld of $27 on line 4d, column 2. You discover the error on
March 16, 2018. This is an example of an administrative error
that may be corrected in a later calendar year because the
amount actually withheld differs from the amount reported on
your 2017 Form 944. Use Form 944-X, line 11, to correct the
error as shown below.
Use the difference in column 3 to determine your tax
correction.
Column 3 (difference)
Tax rate (2.9%)
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.
Column 3 (difference)
Tax rate (0.9%)
Column 4 (tax correction)
-9-
27,000.00
x 0.009
243.00
Be sure to explain the reasons for this correction on line 23.
Prior year nonadministrative errors. You may correct only
the taxable wages and tips subject to Additional Medicare Tax
withholding that you reported on Form 944, line 4d, column 1.
Enter the total corrected amount in column 1. In column 2, enter
the amount you originally reported or as previously corrected. In
column 3, enter the difference between columns 1 and 2.
50,000.00
-3,000.00
Column 3 (difference)
47,000.00
Determine the portion of wages and tips reported in column 3
that is related to the administrative error ($47,000 - $20,000
(nonadministrative error) = $27,000 (administrative error)).
Multiply this portion of column 3 by 0.009 (0.9% tax rate) to
determine your tax correction.
line 11 (column 1)
-line 11 (column 2)
line 11 (column 3)
Column 1 (corrected amount)
Column 2 (from Form 944, line 4d, column 1)
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.
Difference related to administrative error
Tax rate (0.9%)
Column 4 (tax correction)
Don’t multiply the amount in column 3 by 0.009 (0.9% tax rate).
Leave column 4 blank and explain the reasons for this correction
on line 23.
Example—Prior year nonadministrative error (failure to
withhold Additional Medicare Tax when required). Leah
Green's wages exceeded the $200,000 withholding threshold for
Additional Medicare Tax in December 2017. The total wages
paid to Leah for 2017 were $220,000. You were required to
withhold $180 ($20,000 x 0.009) but you withheld nothing and
didn’t report an amount on line 4d of your 2017 Form 944. You
discover the error on March 16, 2018. File Form 944-X to correct
wages and tips subject to Additional Medicare Tax withholding
for your 2017 Form 944, but you may not correct the Additional
Medicare Tax withheld (column 4) because the error involves a
previous year and the amount previously reported for the
employee represents the actual amount withheld from the
employee during 2017.
27,000.00
x 0.009
243.00
Be sure to explain the reasons for these corrections on
line 23. You must also report that $20,000 of the amount shown
in column 3 was related to the correction of a prior year
nonadministrative error and $27,000 of the amount shown in
column 3 was related to the correction of an administrative error.
12. Tax Adjustments
Don’t enter an amount on line 12 unless you need to correct any
adjustments reported on Form 944, line 6. Amounts reported on
line 12 reflect corrections of amounts misstated on Form 944,
line 6. See Example—Adjustment for third-party sick pay
underreported below.
Enter in column 1 the total corrected amount for Form 944,
line 6. Enter in column 2 the total originally reported or previously
corrected amount from Form 944, line 6. In column 3, enter the
difference between columns 1 and 2.
Combination of prior year administrative and nonadministrative errors. If you’re reporting both administrative errors and
nonadministrative errors for the same prior year, enter the total
corrected amount in column 1. In column 2, enter the amount
you originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2. However,
multiply only the amount of wages and tips reported in column 3
that are related to administrative errors by 0.009 (0.9% tax rate).
Don’t multiply any wages and tips reported in column 3 that are
related to nonadministrative errors by 0.009 (0.9% tax rate). Use
line 23 to explain in detail your corrections. The explanation must
include the reasons for the corrections and a breakdown of the
amount reported in column 3 into the amounts related to
administrative errors and nonadministrative errors.
Example—Combination of prior year administrative and
nonadministrative errors. Nathan Smith’s wages exceeded
the $200,000 withholding threshold for Additional Medicare Tax
in November 2017. The total wages paid to Nathan for 2017
were $230,000. You withheld $270 ($30,000 x 0.009) from
Nathan's wages. However, on your 2017 Form 944 you
mistakenly reported $3,000 on line 4d, column 1, and Additional
Medicare Tax withheld of $27 on line 4d, column 2. The
difference in wages subject to Additional Medicare Tax related
to this administrative error is $27,000 ($30,000 - $3,000).
Leah Green's wages exceeded the $200,000 withholding
threshold for Additional Medicare Tax in December 2017. The
total wages paid to Leah for 2017 were $220,000. You were
required to withhold $180 ($20,000 x 0.009) but you withheld
nothing and didn’t report Leah’s $20,000 in wages subject to
Additional Medicare Tax withholding on line 4d of your 2017
Form 944.
You discover both errors on March 16, 2018. Use Form
944-X, line 11, to correct the errors as shown below.
line 12 (column 1)
-line 12 (column 2)
line 12 (column 3)
You may need to report negative numbers in any
TIP column. Make sure that the difference you enter in
column 3 accurately represents the change to
adjustments originally reported or previously corrected on Form
944, line 6.
Copy the amount in column 3 to column 4. Include any minus
sign shown in column 3.
On line 23, describe what you misreported on Form 944. Tell
us if your adjustment is for fractions of cents, third-party sick pay,
tips, or group-term life insurance.
Example—Current year's third-party sick pay
underreported. You reported $690 (shown as “-690.00”) as a
third-party sick pay adjustment (reduction to tax) on your 2017
Form 944, line 6. Your third-party sick pay adjustment should
have been $960 (shown as “-960.00”) because your third-party
sick pay payer withheld that amount of social security and
Medicare taxes from your employees. You discovered the error
in April of 2018. To correct the error, figure the difference on
Form 944-X as shown.
Column 1 (corrected amount)
Column 2 (from Form 944, line 6)
Column 3 (difference)
-960.00
-(690.00)
-270.00
Here is how you would enter the numbers on Form 944-X.
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Instructions for Form 944-X (Rev. 2-2018)
Column 1
(corrected amount)
-960.00
Column 2
(from Form 944, line 6)
-690.00
For Medicare taxes, use the employer rate of 1.45% plus 40%
of the employee rate of 1.45%, for a total rate of 2.03% of
wages.
For Additional Medicare Tax, 0.36% (40% of the employee
rate of 0.9%) of wages subject to Additional Medicare Tax.
For federal income tax withholding, the rate is 3.0% of wages.
Column 3
(difference)
-270.00
Report “-270.00” as your correction in column 4.
In this example, you’re claiming a credit for $270 in
overreported tax for your 2017 Form 944. Always enter the same
amount in column 4 (including any minus sign) that you enter in
column 3.
Be sure to explain the reasons for this correction on line 23.
Unlike other lines on Form 944-X, enter in column 1 only the
corrected wages for workers being reclassified, not the amount
paid to all employees. Enter in column 2 previously reported
wages (if any) to reclassified employees. To get the amount for
column 4, use the applicable section 3509 rates. If you filed the
required information returns for some employees but didn’t file
them for other employees, be sure to use the applicable rates for
each employee when calculating the amounts in column 4 and
show your calculations on line 23. The tax correction in column 4
will be a positive number if you increased the amount of wages
you previously reported. See the instructions for line 22, later, for
more information.
13. Qualified Small Business Payroll Tax Credit
for Increasing Research Activities
If you're correcting the qualified small business payroll tax credit
for increasing research activities that you reported on Form 944,
line 8, enter the total corrected amount in column 1. In column 2,
enter the amount you originally reported or as previously
corrected. In column 3, enter the difference between columns 1
and 2.
18. Subtotal
Combine the amounts on lines 7–17 of column 4 and enter the
total on line 18.
Copy the amount in column 3 to column 4. However, to
properly show the amount as a credit or balance due item, enter
a positive number in column 3 as a negative number in column 4
or a negative number in column 3 as a positive number in
column 4.
Example. You entered “1,400.00” in column 4 of line 7,
“-500.00” in column 4 of line 8, and “-100.00” in column 4 of
line 10. Combine these amounts and enter “800.00” in column 4
of line 18.
You must attach a corrected Form 8974 and explain the
reasons for this correction on line 23.
14–17. Special Additions to Wages for Federal
Income Tax, Social Security Taxes, Medicare
Taxes, and Additional Medicare Tax
Section 3509 provides special rates for the employee share of
social security tax, Medicare tax, Additional Medicare Tax, and
federal income tax withholding when workers are reclassified as
employees in certain circumstances. The applicable rate
depends on whether you filed required information returns. An
employer can’t recover any tax paid under this provision from the
employees. The full employer share of social security tax and
Medicare tax is due for all reclassifications.
1400.00
-500.00
-100.00
Line 18 (column 4)
800.00
19a. Claiming or Correcting the COBRA
Premium Assistance Credit
The COBRA premium assistance credit was available to
an employer for premiums paid on behalf of employees
CAUTION who were involuntarily terminated from employment
between September 1, 2008, and May 31, 2010. The COBRA
premium assistance credit isn’t available for individuals who
were involuntarily terminated after May 31, 2010. Therefore, only
in rare circumstances, such as instances where COBRA
eligibility was delayed as a result of employer provided health
insurance coverage following termination, will the credit be
available.
!
Note. Section 3509 rates aren’t available if you intentionally
disregarded the requirements to withhold taxes from the
employee, or if you withheld federal income tax but didn’t
withhold social security and Medicare tax. Section 3509 rates
are also not available for certain statutory employees.
Enter 65% of the total COBRA premium assistance payments for
all assistance-eligible individuals in column 1. Report the
premium assistance payments on this line only after the
assistance-eligible individual's 35% share of the premium has
been paid. For COBRA coverage provided under a self-insured
plan, COBRA premium assistance is treated as having been
made for each assistance-eligible individual who paid 35% of the
COBRA premium. Don’t include the assistance-eligible
individual's 35% of the premium in the amount entered on this
line.
On lines 14–17, enter only corrections to wages resulting
from reclassifying certain workers as employees when section
3509 rates are used to calculate the taxes.
If the employer issued the required information returns, use
the section 3509 rates as follows.
For social security taxes, use the employer rate of 6.2% plus
20% of the employee rate of 6.2%, for a total rate of 7.44% of
wages.
For Medicare taxes, use the employer rate of 1.45% plus 20%
of the employee rate of 1.45%, for a total rate of 1.74% of
wages.
For Additional Medicare Tax, 0.18% (20% of the employee
rate of 0.9%) of wages subject to Additional Medicare Tax.
For federal income tax withholding, the rate is 1.5% of wages.
For tax periods ending before January 1, 2014, enter any
COBRA premium assistance payments previously claimed on
Form 944, line 9a, in column 2. For tax periods beginning after
December 31, 2013, enter -0- in column 2, unless you’re
correcting a COBRA premium assistance payment previously
reported on a Form 944-X. If you or the IRS previously corrected
the amount reported, the amount entered in column 2 should
take into account all previous corrections.
If the employer didn’t issue the required information returns,
use the section 3509 rates as follows.
For social security taxes, use the employer rate of 6.2% plus
40% of the employee rate of 6.2% for a total rate of 8.68% of
wages.
Instructions for Form 944-X (Rev. 2-2018)
Line 7 (column 4)
Line 8 (column 4)
Line 10 (column 4)
Enter the difference between column 1 and 2 in column 3.
Copy the amount in column 3 to column 4. However, to properly
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show the amount as a credit or balance due item, enter a
positive number in column 3 as a negative number in column 4
or a negative number in column 3 as a positive number in
column 4.
Amount you owe. If the amount entered on line 20 is a positive
number, you must pay the amount you owe by the time you
file Form 944-X. You may not use any credit that you show on
another Form 944-X to pay the amount you owe, even if you filed
for the amount you owe and the credit at the same time.
If you owe tax and are filing a timely Form 944-X, don’t file an
amended Form 945-A unless you were assessed an FTD
penalty caused by an incorrect, incomplete, or missing Form
945-A. Don’t include the tax increase reported on Form 944-X on
any amended Form 945-A you file.
If you owe tax and are filing a late Form 944-X, that is, after
the due date of Form 944 for the year in which you discovered
the error, you must file an amended Form 945-A with the Form
944-X. Otherwise, the IRS may assess an “averaged” FTD
penalty. The total tax reported on Form 945-A, line M, must
match the corrected tax (Form 944, line 9 (line 7 for years before
2017), combined with any correction reported on Form 944-X,
line 18) for the year, less any previous abatements and
interest-free tax assessments.
Payment methods. You may pay the amount you owe on
line 20 electronically using the Electronic Federal Tax Payment
System (EFTPS), by credit or debit card, or by a check or money
order.
The preferred method of payment is EFTPS. For more
information, go to EFTPS.gov, or call EFTPS Customer Service
at 1-800-555-4477 or 1-800-733-4829 (TDD). Additional
information about EFTPS is also available in Pub. 966.
To pay by credit or debit card, go to IRS.gov/PayByCard.
Your payment will be processed by a payment processor who
will charge a processing fee.
If you pay by check or money order, make it payable to
“United States Treasury.” On your check or money order, be
sure to write your EIN, “Form 944-X,” and year corrected.
You don’t have to pay if the amount you owe is less than $1.
Previously assessed FTD penalty. If line 20 reflects
overreported tax and the IRS previously assessed an FTD
penalty, you may be able to reduce the penalty. For more
information, see the Form 945-A instructions.
The COBRA premium assistance credit is treated as a
credit on the first day of the return period (that is,
CAUTION January 1). However, because the credit is now claimed
on Form 944-X filed after submission of the Form 944, an
employer that reduces its required deposits in anticipation of the
credit will receive a system-generated notice reflecting a balance
due and associated penalties and interest, if applicable. The
balance due, including any related penalties and interest,
resulting from the reduction in deposits in anticipation of the
credit will be abated when the credit is applied. Such abatement
will generally occur without any further action from the employer.
Alternatively, to prevent triggering a system-generated balance
due notice, the employer can make its deposits without a
reduction in anticipation of the COBRA premium assistance
credit and follow these instructions for claiming the COBRA
premium assistance credit.
!
For more information on the COBRA premium subsidy, go to
IRS.gov/COBRACredit.
19b. Number of Individuals Provided COBRA
Premium Assistance on Line 19a
Enter the total number of assistance-eligible individuals provided
COBRA premium assistance in column 1. Count each
assistance-eligible individual who paid a reduced COBRA
premium in the period as one individual, whether or not the
reduced premium was for insurance that covered more than one
assistance-eligible individual. For example, if the reduced
COBRA premium was for coverage for a former employee,
spouse, and two children, you would include one individual in
the number entered on line 19b for the premium assistance
entered on line 19a. Further, each individual is reported only
once per period. For example, an assistance-eligible individual
who made monthly premium payments during the period would
only be reported as one individual on line 19b for that period.
Part 4: Explain Your Corrections for
the Calendar Year You’re Correcting
For tax periods ending before January 1, 2014, enter the
number of assistance-eligible individuals provided COBRA
premium assistance previously reported on Form 944, line 9b, in
column 2. For tax periods beginning after December 31, 2013,
enter -0- in column 2, unless you’re correcting a previously filed
Form 944-X. If you or the IRS previously corrected the number of
individuals reported, the number entered in column 2 should
take into account all previous corrections.
21. Correction of Both Underreported and
Overreported Amounts
Check the box on line 21 if any correction you entered on lines
7–17 and 19a in column 3 reflects both underreported and
overreported amounts.
Example. If you had an increase to social security wages of
$1,500 for Nathan Smith and a decrease to social security
wages of $500 for Leah Green, you would enter $1,000 on line 8,
column 3. That $1,000 represents the net change from offsetting
corrections.
On line 23, you must explain the reason for both the $1,500
increase and the $500 decrease.
20. Total
Combine line 18 and column 4 of line 19a, and enter the result
on line 20.
Your credit. If the amount entered on line 20 is less than zero,
for example, “-115.00,” you have a credit because you
overreported your federal employment taxes.
If you checked the box on line 1, include this amount on the
“Total deposits” line of Form 944 for the year during which you
filed Form 944-X. If you currently file Form 941 or Form 941-SS
because your filing requirement changed, include this amount on
the “Total deposits” line of Form 941 or Form 941-SS for the
quarter during which you filed Form 944-X. Don’t make any
changes to your record of federal tax liability reported on Form
944, line 13, or Form 945-A. The amounts reported on the record
should reflect your actual tax liability for the period.
If you checked the box on line 2, you’re filing a claim for
refund or abatement of the amount shown.
If your credit is less than $1, we will send a refund or apply it
to your next return only if you ask us in writing to do so.
22. Did You Reclassify Any Workers?
Check the box on line 22 if you reclassified any workers to be
independent contractors or nonemployees. Also check this box if
the IRS or you determined that workers you treated as
independent contractors or nonemployees should be classified
as employees. On line 23, give us a detailed reason why any
worker was reclassified and, if you used section 3509 rates on
lines 14–17 for any worker reclassified as an employee, explain
why section 3509 rates apply and what rates you used.
Return not filed because you didn’t treat any workers as
employees. If you didn't previously file Form 944 because you
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Instructions for Form 944-X (Rev. 2-2018)
Sole proprietorship—The individual who owns the
business.
Corporation (including a limited liability company (LLC)
treated as a corporation)—The president, vice president, or
other principal officer duly authorized to sign.
Partnership (including an LLC treated as a partnership)
or unincorporated organization—A responsible and duly
authorized member, partner, or officer having knowledge of its
affairs.
Single-member LLC treated as a disregarded entity for
federal income tax purposes—The owner of the LLC or a
principal officer duly authorized to sign.
Trust or estate—The fiduciary.
Form 944-X may also be signed by a duly authorized agent of
the taxpayer if a valid power of attorney has been filed.
mistakenly treated workers as independent contractors or as
nonemployees, file a Form 944 for each delinquent year.
On each Form 944 for which you’re entitled to use section
3509 rates, complete the following steps.
Write “Misclassified Employees” in bold letters across the
top margin of page 1.
Enter a zero on line 9 (line 7 for years before 2017).
Complete the signature area.
Attach a completed Form 944-X (see instructions next).
On each Form 944-X, complete the following steps.
Complete the top of Form 944-X, including the date you
discovered the error.
Enter the wage amounts on lines 14–17, column 1.
Enter zeros on lines 14–17, column 2.
Complete columns 3 and 4 as instructed in Part 3.
Provide a detailed statement on line 23.
Complete the signature area.
Alternative signature method. Corporate officers or duly
authorized agents may sign Form 944-X by rubber stamp,
mechanical device, or computer software program. For details
and required documentation, see Rev. Proc. 2005-39, 2005-28
I.R.B. 82, available at IRS.gov/irb/2005-28_IRB/ar16.html.
If you can’t use section 3509 rates (for example,
because the workers you treated as nonemployees were
CAUTION certain statutory employees), file a Form 944 for each
delinquent year. Write “Misclassified Employees” in bold
letters across the top margin of page 1 of each Form 944.
Complete Form 944 using the Instructions for Form 944. Attach
a Form 944-X to each Form 944. Complete the top of Form
944-X, including the date you discovered the error, and provide
a detailed explanation on line 23.
!
Paid Preparer Use Only
A paid preparer must sign Form 944-X and provide the
information in the Paid Preparer Use Only section of Part 5 if the
preparer was paid to prepare Form 944-X and isn’t an employee
of the filing entity. Paid preparers must sign paper returns with a
manual signature. The preparer must give you a copy of the
return in addition to the copy to be filed with the IRS.
23. Explain Your Corrections
If you’re a paid preparer, enter your Preparer Tax
Identification Number (PTIN) in the space provided. Include your
complete address. If you work for a firm, enter the firm's name
and the EIN of the firm. You can apply for a PTIN online or by
filing Form W-12. For more information about applying for a PTIN
online, go to IRS.gov/PTIN. You can’t use your PTIN in place of
the EIN of the tax preparation firm.
Treasury regulations require you to explain in detail the grounds
and facts relied upon to support each correction. On line 23,
describe in detail each correction you entered in column 4 on
lines 7–17 and 19a. Also use line 23 to describe in detail
corrections made on line 19b. If you need more space, attach
additional sheets, but be sure to write your name, EIN, “Form
944-X,” and the calendar year you’re correcting on the top of
each sheet.
Generally, you’re not required to complete this section if
you’re filing the return as a reporting agent and have a valid
Form 8655 on file with the IRS. However, a reporting agent must
complete this section if the reporting agent offered legal advice,
for example, advising the client on determining whether its
workers are employees or independent contractors, for federal
tax purposes.
You must describe the events that caused the underreported
or overreported amounts. Explanations such as “social security
and Medicare wages were overstated,” “administrative/payroll
errors were discovered,” or “taxes were not withheld” are
insufficient and may delay processing your Form 944-X because
the IRS may need to ask for a more complete explanation.
Provide the following information in your explanation of each
correction.
Form 944-X line number(s) affected.
Date you discovered the error.
Amount of the error.
Cause of the error.
How Can You Get Forms,
Instructions, and Publications From
the IRS?
You can download or print some of the forms and
publications you may need on IRS.gov/Forms.
Otherwise, you can go to IRS.gov/OrderForms to place
an order and have forms mailed to you.
You may report the information in paragraph form. The
following paragraph is an example.
“The $100 difference shown in column 3 of lines 6, 8, and 10
was discovered on May 15, 2017, during an internal payroll
audit. We discovered that we included $100 of wages for one of
our employees twice. This correction removes the reported
wages that were never paid.”
Paperwork Reduction Act Notice. We ask for the information
on Form 944-X to carry out the Internal Revenue laws of the
United States. We need it to figure and collect the right amount
of tax. Subtitle C, Employment Taxes, of the Internal Revenue
Code imposes employment taxes, including federal income tax
withholding, on wages. This form is used to determine the
amount of taxes you owe. Section 6011 requires you to provide
the requested information if the tax applies to you.
For corrections shown on lines 14-17, explain why the
correction was necessary and attach any notice you received
from the IRS.
Part 5: Sign Here
You’re not required to provide the information requested on a
form that is subject to the Paperwork Reduction Act unless the
form displays a valid OMB control number. Books and records
relating to a form or instructions must be retained as long as their
contents may become material in the administration of any
Internal Revenue law.
You must complete all three pages of Form 944-X and sign it on
page 3. If you don’t sign, processing of Form 944-X will be
delayed.
Who must sign the Form 944-X? The following persons are
authorized to sign the return for each type of business entity.
Instructions for Form 944-X (Rev. 2-2018)
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The time needed to complete and file Form 944-X will vary
depending on individual circumstances. The estimated average
time is:
Recordkeeping . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . .
Preparing and sending the form to the IRS
. . . . . . .
. . . . . . .
. . . . . . .
If you have comments concerning the accuracy of these time
estimates or suggestions for making Form 944-X simpler, we
would be happy to hear from you. You can send us comments
from IRS.gov/FormComments. Or you can send your comments
to: Internal Revenue Service, Tax Forms and Publications
Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC
20224. Don’t send Form 944-X to this address. Instead, see
Where Should You File Form 944-X, earlier.
17 hr., 27 min.
45 min.
2 hr., 16 min.
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Instructions for Form 944-X (Rev. 2-2018)
| File Type | application/pdf |
| File Title | Instructions for Form 944-X (Rev. February 2018) |
| Subject | Instructions for Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund |
| Author | W:CAR:MP:FP |
| File Modified | 2018-03-05 |
| File Created | 2018-03-01 |